XML 42 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Fair Value of Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements The Company’s financial assets and liabilities as of December 31, 2021 that are measured at fair value on a recurring basis are as follows (in thousands):
|  | Estimated Fair Value
|  | December 31, |  | Fair Value Measurements Using
|  | 2021 |  | Level 1 |  | Level 2 |  | Level 3
Financial liabilities: |  |  |  |  |  |  |  |
Contingent Consideration (1) |  | $ | 109,549 |  |  | $ | — |  |  | $ | — |  |  | $ | 109,549 |
(1)The current portion of $95.6 million is included in accounts payable and accrued liabilities and the non-current portion of $14.0 million is included in other liabilities in the accompanying consolidated balance sheets. As further discussed in Note 3, the Company estimated the preliminary fair value of the Contingent Consideration to be $127.4 million, as of the AFF Acquisition date. The Company revalues the Contingent Consideration to fair value at the end of each reporting period. The estimate of the fair value of Contingent Consideration is determined by applying a Monte Carlo simulation, which includes inputs not observable in the market, such as the risk-free rate, risk-adjusted discount rate, the volatility of the underlying financial metrics and projected financial forecast of AFF over the earn-out period, and therefore represents a Level 3 measurement. Significant increases or decreases in these inputs could result in a significantly lower or higher fair value measurement of the Contingent Consideration. The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the year ended December 31, 2021 is as follows (in thousands):
| Contingent Consideration
Contingent Consideration issued December 17, 2021 (see Note 3) | $ | 127,420 |
Change in fair value (1) | (17,871) |
Balance at December 31, 2021 | $ | 109,549 |
(1) The Company recognized a $17.9 million gain during 2021 as a result of the change in fair value of the stock price component of Contingent Consideration (see Note 3), which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income. The change in fair value was a result of the increase in the Company’s stock price from $62.83 on December 16, 2021 to $74.81 on December 31, 2021. There were no transfers in or out of Level 1, 2 or 3 during the year ended December 31, 2021 and 2020, and the Company did not have any financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2020. Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities, such as property and equipment and intangible assets, at fair value on a non-recurring basis, or when events or circumstances indicate that the carrying amount of the assets may be impaired. During 2020, the Company recorded a $1.9 million impairment of other assets and a $1.5 million impairment of property and equipment. Financial Assets and Liabilities Not Measured at Fair Value, But for Which Fair Value is Disclosed The Company’s financial assets and liabilities as of December 31, 2021 and 2020 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands):
|  | Carrying Value |  | Estimated Fair Value
|  | December 31, |  | December 31, |  | Fair Value Measurements Using
|  | 2021 |  | 2021 |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 120,046 |  |  | $ | 120,046 |  |  | $ | 120,046 |  |  | $ | — |  |  | $ | — |
Accounts receivable, net |  | 55,356 |  |  | 55,356 |  |  | — |  |  | — |  |  | 55,356 |
Pawn loans |  | 347,973 |  |  | 347,973 |  |  | — |  |  | — |  |  | 347,973 |
Finance receivables, net |  | 181,021 |  |  | 233,000 |  |  | — |  |  | — |  |  | 233,000 |
|  | $ | 704,396 |  |  | $ | 756,375 |  |  | $ | 120,046 |  |  | $ | — |  |  | $ | 636,329 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Revolving unsecured credit facilities |  | $ | 259,000 |  |  | $ | 259,000 |  |  | $ | — |  |  | $ | 259,000 |  |  | $ | — |
Senior unsecured notes (outstanding principal) |  | 1,050,000 |  |  | 1,058,000 |  |  | — |  |  | 1,058,000 |  |  | — |
|  | $ | 1,309,000 |  |  | $ | 1,317,000 |  |  | $ | — |  |  | $ | 1,317,000 |  |  | $ | — |
|  | Carrying Value |  | Estimated Fair Value
|  | December 31, |  | December 31, |  | Fair Value Measurements Using
|  | 2020 |  | 2020 |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 65,850 |  |  | $ | 65,850 |  |  | $ | 65,850 |  |  | $ | — |  |  | $ | — |
Accounts receivable, net |  | 41,110 |  |  | 41,110 |  |  | — |  |  | — |  |  | 41,110 |
Pawn loans |  | 308,231 |  |  | 308,231 |  |  | — |  |  | — |  |  | 308,231 |
|  | $ | 415,191 |  |  | $ | 415,191 |  |  | $ | 65,850 |  |  | $ | — |  |  | $ | 349,341 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Revolving unsecured credit facility |  | $ | 123,000 |  |  | $ | 123,000 |  |  | $ | — |  |  | $ | 123,000 |  |  | $ | — |
Senior unsecured notes (outstanding principal) |  | 500,000 |  |  | 516,000 |  |  | — |  |  | 516,000 |  |  | — |
|  | $ | 623,000 |  |  | $ | 639,000 |  |  | $ | — |  |  | $ | 639,000 |  |  | $ | — |
As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and accounts receivable, net approximate fair value. Finance receivables are measured at amortized cost, net of an allowance for loan losses on the consolidated balance sheets. In estimating fair value for finance receivables, the Company utilized a discounted cash flow methodology. The Company used various unobservable inputs reflecting its own assumptions, such as contractual future principal and interest cash flows, future charge-off rates and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors). The carrying value of the unsecured credit facilities approximate fair value as of December 31, 2021 and 2020. The fair value of the unsecured credit facilities is estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. In addition, the unsecured credit facilities have a variable interest rate based on a fixed spread over LIBOR or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and reprice with any changes in LIBOR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration